SpaceX-Tesla deal intended to close before end of Trump’s term: Bloomberg

Elon Musk has finally made his stance clear, throwing his full support behind a potential merger of SpaceX (SPCX) and Tesla (TSLA), his two most valuable companies, in a deal that could mark the largest corporate transaction in history.

A merger announcement is being targeted for the first half of 2027, with the aim of closing the deal during Trump's presidency, Bloomberg News reported. The companies have a combined market value of about $3.7T.

Musk’s strongest public endorsement yet, delivered during the first of back-to-back earnings calls, comes at a moment of extraordinary influence for the world’s richest man. Having repaired his relationship with President Donald Trump, he’s regained access to the White House and tapped into fervent investor enthusiasm.

“Musk and his advisers certainly want to take advantage of this window,” said Bill Birmingham, head of research at REX Financial. "The timing is both favorable and critical."

SpaceX's (SPCX) share-price recovery also makes it an attractive time to pursue a transaction, Morningstar analyst Nicolas Owens said. "It's a great time to use that stock as currency to do a deal," Owens said, as per the report. "If SpaceX's stock price were to fall, it could complicate a purchase agreement."

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